Despite slipping from first place to second, Deutsche Bank’s team of six under Michael Biggs and Gareth Evans maintains a loyal base thanks to being “quick and reactive to the news flow, with strong research pieces and special studies that showcase a global view,” according to one portfolio manager in Milan. The strategists, who work out of Frankfurt and London, believe that “the main unpriced development that could happen is a recovery in euro area growth as credit conditions stabilize,” Evans says. “You can explain spending growth in Europe according to changes in new borrowing, or a change in credit growth.” But what’s needed for a sustainable recovery is for the pace of deleveraging to slow — “and the hurdle here is low,” he adds. Against this backdrop the team is recommending domestic cyclicals and financials. — Carolyn Koo |
Economics & Strategy – Equity Strategy: Second